Results of Operations for quarter ending 30 June 2015
Three Months Ended June 30, 2015 (“the 2015 three-month period”) Compared to Three Months Ended June 30, 2014 (“the 2014 three-month period”).
Revenues:
Revenues increased to $392,279 for the 2015 three-month period from $166,405 for the 2014 three-month period.
Revenues from the New York Club decreased twelve percent (12%) to $22,003 as compared to $24,987 for the 2015 and 2014 three-month periods, respectively. Revenues from our Chicago nightclub increased twenty-four percent (24%) to $43,867 for the 2015 three-month period from $35,489 from the 2014 three-month period, while revenues from our Baltimore club decreased three percent (3%) to $35,645 for the 2015 three-month period from $36,645 for the 2014 three-month period and revenues from our New Orleans club remained the same at $30,000 for the 2015 and 2014 three-month period. Revenue from our Tampa club remained the same at $30,000 for the 2015 and 2014 three-month period. Revenue from our Scoreslive.com licensee decreased seventy-six percent (76%) to $2,264 for the 2015 three-month period from $9,285 for the 2014 three-month period. Revenues from our Atlantic City nightclub licensee remained the same at $30,000 for the 2015 and 2014 three-month period. Revenues from our Houston Club increased one hundred percent (100%) to $11,500 as royalties commenced in the fourth quarter of 2014. Revenues from our Harvey Club increased one hundred percent (100%) to $15,000 as royalties commenced in the fourth quarter of 2014. Revenues from our Gary, Indiana Club increased one hundred percent (100%) to $2,000, as royalties commenced in the first quarter of 2015. Revenues from our Savannah Club increased one hundred percent (100%) to $85,000 as the Club has started to pay royalties including past due royalties. Revenues from our Jacksonville Club increased one hundred percent (100%) to $85,000 as the Club has started to pay royalties including past due royalties. Since our licenses are mostly structured such that we receive a percentage of revenues from our licensees, the foregoing increase or decreases are a direct result of revenues at the licensee level.
General and Administrative Expenses:
General and administrative expenses increased during the 2015 three-month period to $125,266 from $117,545 during the 2014 three-month period. General and administrative expenses increased approximately by $7,721 from 2015 to 2014, which can be attributed mainly to the increase in management services of $22,500 through the management services agreement along with the decrease in legal fees. Legal expenses attributable to ongoing litigation amounted to $7,886 for the three-month period ended June 30, 2015 and $48,410 for the three-month period ended June 30, 2014.
Provision for Income Taxes
The provision for state income taxes relates primarily to the greater of average assets and capital taxable income. The average assets and capital are not impacted by net operating losses.
Net Income:
Our net income was $266,950 or $0.002 for the 2015 three-month period compared to net income of $81,714 or $0.000 per share for the 2014 three-month period. The increase in net income for the 2015 three-month period from the 2014 three-month period was in part a result of the Jacksonville and Savannah clubs paying past due royalties for the 2015 three-month period pursuant to an April 17, 2015 amendment to our licensing agreement with the operator of these clubs.
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Net income per share data for both the 2015 three-month period and the 2014 three-month period is based on net income available to common shareholders divided by the weighted average of the number of common shares outstanding.
Six Months Ended June 30, 2015 (“the 2015 six-month period”) Compared to Six Months Ended June 30, 2014 (“the 2014 six-month period”).
Revenues:
Revenues increased to $614,267 for the 2015 six-month period from $370,758 for the 2014 six-month period.
Revenues from the New York Club decreased thirty-three percent (33%) to $39,272 as compared to $58,463 for the 2015 and 2014 six-month periods, respectively. Revenues from our Chicago nightclub increased nineteen percent (19%) to $77,764 for the 2015 six-month period from $65,314 from the 2014 six-month period, while revenues from our Baltimore club decreased three percent (3%) to $69,820 for the 2015 six-month period from $72,342 for the 2014 six-month period and revenues from our New Orleans club remained the same at $60,000 for the 2015 and 2014 six-month period. Revenue from our Tampa club remained the same at $60,000 for 2015 and 2014 six month period. Revenue from our Scoreslive.com licensee decreased seventy-six percent (76%) to $5,910 for the 2015 six-month period from $24,640 for the 2014 six-month period. Revenues from our Atlantic City nightclub licensee increased one hundred percent (100%) to $60,000 for the 2015 six month period from $30,000 for the 2014 six month period. Revenues from our Houston Club increased one hundred percent (100%) to $33,500 for the 2015 six month period, as royalties commenced in the fourth quarter of 2014. Revenues from our Harvey Club increased one hundred percent (100%) to $30,000 for the 2015 six month period, as royalties commenced in the fourth quarter 2014. Revenues from our Gary Indiana Club increased one hundred percent (100%) to $8,000, for the 2015 six month period, as royalties commenced in the first quarter of 2015. Revenues from our Savannah Club increased one hundred percent (100%) to $85,000 for the 2015 six month period, as the Club has started to pay royalties including past due royalties. Revenues from our Jacksonville Club increased one hundred percent (100%) to $85,000 for the 2015 six month period, as the Club has started to pay royalties including past due royalties. Since our licenses are mostly structured such that we receive a percentage of revenues from our licensees, the foregoing increase or decreases are a direct result of revenues at the licensee level.
General and Administrative Expenses:
General and administrative expenses increased during the 2015 six-month period to $316,891 from $234,334 during the 2014 six-month period. General and administrative expenses increased approximately by $82,557 from 2015 to 2014, which increase can largely be attributed to the discretionary bonus to the management services of $90,000 and the decrease in the Company’s legal fees. Legal expenses attributable to ongoing litigation amounted from $22,291 in the 2015 six-month period to $91,828 in the 2014 six-month period.
Provision for Income Taxes:
The provision for state income taxes relates primarily to the greater of average assets and capital taxable income. The average assets and capital are not impacted by net operating losses.
Net Income:
Our net income was $297,156 or $0.002 per share for the 2015 six-month period compared to a net income of $232,664 or $0.001 per share for the 2014 six-month period. The increase in net operating income for the 2015 six-month period was a result of an increase in royalty revenue.
Net income per share data for both the 2015 six-month period and the 2014 six-month period is based on net income available to common shareholders divided by the weighted average of the number of common shares outstanding.
